Automatic allocation of standard service costs
If your site does not use the Invoices application, services are prorated upon purchase order approval in the Purchase Orders application. If your site uses the Invoices application to manage invoices, services are prorated or allocated in Invoices.
Upon invoice approval, the standard service costs are prorated across all invoice line items if the standard service can be allocated. That is, if the Prorate Service check box is selected either in the PO Lines tab or in the Invoice Lines tab).
If the Add Standard Service Costs to Direct Issue Items Only check box (available in the Organizations application) is selected, the standard services are allocated to only those invoice line items that have the Issue On Receipt check box selected. The percentage of the cost that is prorated to each line item is based on the line cost of the line item, as shown in the following example.
Example
There are two standard services entered on the invoice. The Prorate Service check box is selected for each. The line costs of the standard services are:
- Standard Service 1: $100
- Standard Service 2: $200
- Total: $300
There are four item invoice lines that generated the standard services. Their line costs are:
- Line 1: $300
- Line 2: $400
- Line 3: $50
- Line 4: $250
- Total: $1000
When the invoice is approved, the standard service total of $300 is prorated as follows:
| Line | Line Cost | % of Service Total Added | Total Prorated Cost | Loaded Cost |
|---|---|---|---|---|
| Line 1 | $300 | 30% | $90 | $390 |
| Line 2 | $400 | 40% | $120 | $520 |
| Line 3 | $50 | 5% | $15 | $65 |
| Line 4 | $250 | 25% | $75 | $325 |
| Totals | $1000 | 100% | $300 | $1300 |
In the preceding example, if Standard Service 1 cannot be allocated, then only $200 would be prorated among the four lines.